US markets closed higher overnight, extending gains for the second session and ending just off best levels after rallying the last hour of trade.

A bit of volatility running into the CPI numbers. This CPI number tonight had better be good, but judging from the drop in bond yields running into tonight the bond market obviously thinks it knows. Let’s not waste any more breath, I’m not taking any bets ahead of it, although experience tells you that the bond market vibe shouldn’t be ignored.

Wall Street ended higher overnight in a muted day of trade ahead of CPI data Wednesday.

Not the best list of headlines today but the market doesn’t care, and that’s a bit of a theme – see below. Some of the headlines: US corporate earnings season unlikely to fuel fresh gains in the stock market. S&P 500 braces for profit warnings. Rate fears accelerate. Fed’s QT program to kick in in coming months. Eurozone sentiment weakens for a fifth consecutive month. Deflationary spiral risk in China. This comes after the Chinese CPI number of 0% yesterday and PPI numbers showing the biggest decline since 2015. It is a reflection of the weak Chinese economy which doesn’t…